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The proposal of imposing a 28% tax on gaming companies still building IP and technology will lead to the destruction of newer gaming ventures that focuses on the future, states Saumya Singh Rathore, co-founder of WinZO Games. In addition to this, it also affects early-stage innovation-driven startups created exclusively to cater to Indian consumers. The imposition of higher taxes could shrink access to FDIs and capital for more prominent and mature companies.
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